B50 Biodiesel Mandate to Take Effect on 1 July 2026, Indonesia to Face Surplus of Diesel Fuel

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has revealed that Indonesia will experience an oversupply of diesel fuel (BBM Solar) in the near future. This follows the upcoming implementation of the mandatory 50% biodiesel blending policy (B50) for diesel fuel starting 1 July 2026. According to Bahlil, Indonesia will no longer import diesel with Cetane Number (CN) 48 or C48 in 2026, as domestic production capacity will suffice to meet internal needs. This is particularly true after the Balikpapan Refinery Development Master Plan (RDMP) project becomes operational in January 2026 and the 40% biodiesel blending policy (B40) has been in place since 2025. “The Solar CN 48, which is commonly used in markets for cars and various vehicles, can now be produced domestically. Moreover, with B50 coming into effect, it means we will have a surplus. This surplus will certainly occur starting from the implementation of B50 in July,” said Bahlil at the Ministry of ESDM building in Jakarta on Friday (17/4/2026). Nevertheless, he acknowledged that around 50% of Indonesia’s petrol fuel needs are still met through imports. Bahlil then detailed that national petrol consumption currently stands at around 39 to 40 million kilolitres (kl) per year. Meanwhile, domestic production capacity before the Balikpapan RDMP project was approximately 14.3 million kl. With the addition of capacity from the Balikpapan RDMP of about 5.6 to 5.7 million kl, total domestic petrol production from refineries will increase to nearly 20 million kl per year. “From there, our domestic production before the Balikpapan RDMP was 14.3 million (kl). The addition from the Balikpapan RDMP is 5.6-5.7 million kl. So nearly 20 million kilolitres. That means our imports will be left at 50%,” said Bahlil.